Party and Government: "Onnuri Gift Certificates Reach Record High of 5.5 Trillion Won"... Boosting Economic Vitality

2025 Budget Proposal Party-Government Meeting Held
Strengthening Support for the Disabled and Small Business Owners
Preparing for the Future with Enhanced Low Birthrate Response and R&D Support

The People Power Party and the government agreed on the 20th to increase the issuance of Onnuri gift certificates for next year to a record high of 5.5 trillion won and expand their usage, while also establishing a scale-up support program for promising small business owners and a dedicated 500 billion won fund for e-commerce. Additionally, the standard median income will be raised by a record 6.4% for the third consecutive year, and support for socially vulnerable groups in areas such as medical care, heating and cooling costs, and childcare expenses will be expanded. The aim is to revitalize the sluggish domestic economy and protect the lower and middle classes.

On the morning of the same day, the ruling party and government held a party-government consultation meeting at the National Assembly regarding the 2025 budget proposal and reached this consensus. The four major investment priorities for next year’s budget are strengthening welfare for socially vulnerable groups, boosting economic vitality, improving structural readiness for the future, and ensuring a safe society.

To support struggling small business owners and stimulate the domestic economy, the ruling party and government decided to increase the issuance of Onnuri gift certificates to an all-time high and reduce the number of restricted business types from the current 40 to 28 to expand usage. They also plan to halve kiosk (unmanned information terminal) fees for small business owners. A new 500 billion won fund will be established for 'scale-up support' for promising small business owners and for e-commerce. For small business owners facing temporary management difficulties or with weak credit, the loan scale will be expanded and the new start fund for debt adjustment will be increased from the current 30 trillion won to about 40 trillion won or more. Support for farmers’ stable livelihoods will also be strengthened. Import safety insurance to stabilize agricultural product prices will be expanded, with the government covering 50% of the insurance premiums. Measures such as a 5% increase in direct payment rates, expansion of agricultural product stockpiles, and increased contract farming volumes will also be pursued.

In addition to raising the standard median income, coverage in the medical aid sector will be strengthened to nearly double the cost of maintaining a healthy lifestyle. Employment support through disability employment incentives will be enhanced, and heating and cooling costs for senior centers as well as childcare support rates will be significantly increased. In particular, a prepayment system will be introduced to provide about 200,000 won in childcare expenses upfront for single-parent families. Furthermore, public housing supply and non-apartment housing supply for the housing stability of low-income households will be greatly expanded, and measures such as agreements to purchase unsold apartments will be introduced to actively support vulnerable and low-income groups.

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Economy and Finance, is speaking at the party-government consultation meeting on the 2025 budget held at the National Assembly on the 20th. Photo by Hyunmin Kim kimhyun81@

Measures to prepare for the future, such as responding to low birth rates, medical reform, and advanced industry research and development (R&D), will also be strengthened. The ruling party and government will raise the upper limit of parental leave pay to encourage childbirth, expand spousal paternity leave, broaden government support standards for childcare services, and introduce emergency childcare services at workplace daycare centers. Social benefits will also be expanded, including doubling the electric vehicle purchase subsidy to 6 million won for families with multiple children and increasing the K-Pass transportation card discount rate up to 50% (for families with three or more children).

To complete medical reform, 1,000 national university professors in essential medical fields will be added over three years. Additionally, to nurture core science and technology personnel, research incentives for master's and doctoral students will be doubled from current levels, and new scholarships for science and engineering master’s students will be introduced. A Korean-style stipend guaranteeing stable student wages of 800,000 won for master’s and 1.1 million won for doctoral science and engineering students participating in R&D projects will also be established.

Investments for national and social safety will also be made. To address recent issues with electric vehicle fires, the distribution of fire-prevention chargers for electric vehicles will be expanded to 90,000 units, and budgets will be allocated to introduce unmanned fire suppression vehicles and electric vehicle fire extinguishing equipment. The purchase of homes affected by jeonse fraud will be expanded from 5,000 to 7,500 units, training allowances will be newly provided for unassigned reservists, and transportation expenses will be introduced for reservists during mobilization exercises. Furthermore, to support stable academic activities for military children, 30-pyeong or smaller dormitories will be expanded in key areas, and accommodations for officers in remote areas will also be increased.

Kim Sang-hoon, chairman of the People Power Party’s Policy Committee, told reporters after the consultation meeting, "Unlike the main opposition party, the Democratic Party, which treats the people’s taxes as their own petty cash and wastes finances on temporary cash handouts, the People Power Party, as a responsible ruling party, has done its best to reflect budgets addressing urgent issues such as expanding support for socially vulnerable groups and overcoming low birth rates for the long-term future of the Republic of Korea."